Big jump, by $8 billion (83.3%), recorded in trading revenue for banks in first quarter

Trading revenue was up $8 billion to $17.6 billion in the first quarter of the year for banks and savings associations from the fourth quarter of 2022, the regulator of national banks said Thursday, representing an 83.3% increase.

Compared to the first quarter of 2022, the Office of the Comptroller of the Currency (OCC) said trading revenue was $7 billion higher, a 66% jump. The figures were reported in the OCC’s Quarterly Report on Bank Trading and Derivatives Activities.

As is typical of trading revenue, a handful of large banks were responsible for most of the activity: the OCC said four large banks held 89% of the total banking industry notional amount of derivatives (more than $193 trillion). A total of 1,176 insured U.S. national and state commercial banks and savings associations hold the financial contracts, the OCC said.

The OCC also reported that derivative contracts remain concentrated in interest rate products, totaling $160.3 trillion or 73.6% of total derivative notional amounts.

OCC Reports First Quarter 2023 Bank Trading Revenue